- 1 -
MFA No. 101422 of 2019
C/W MFA No. 100932 of 2019
IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
DATED THIS THE 26TH DAY OF SEPTEMBER, 2022
PRESENT
THE HON'BLE MR JUSTICE S G PANDIT
AND
THE HON'BLE MR JUSTICE ANANT RAMANATH HEGDE
MISCELLANEOUS FIRST APPEAL NO. 101422 OF 2019 (MV-D)
C/W
MISCELLANEOUS FIRST APPEAL NO. 100932 OF 2019
IN MFA NO.101422/2019:
BETWEEN:
1.
SRI.CHANDRAKANT S/O KRISHNA NAIK
AGE:62 YEARS, OCC:AGRICULTURIST
R/O.KODKANI, TQ:KUMTA
NOW RESIDING AT KODLGADDE OF
ANKOLA, TQ:ANKOLA-581314.
2.
SMT.KAMALA W/O CHANDRAKANT NAIK
AGE:58 YEARS, OCC:HOUSEHOLD,
R/O.KODKANI, TQ:KUMTA,
NOW RESIDING AT KODLGADDE OF
ANKOLA, TQ:ANKOLA-581314.
…APPELLANTS
(BY SRI.ANAND DESAI, ADV. FOR
SRI.J S SHETTY, ADV.)
AND:
1.
M/S.A.M.D. SOUZA and SONS
OWNER OF VEHICLE NO.MH-01/BS-0067,
- 2 -
MFA No. 101422 of 2019
C/W MFA No. 100932 of 2019
R/O.SHOP NO.4, GURUKRIPA COMPLES,
OPP.KARAVALI HOTEL,
UDUPI, DISTRICT:UDUPI-576101.
2.
THE NATIONAL INSURANCE CO. LTD.,
DIVISIONAL OFFICE, AT:II FLOOR,
RASLK CHAMBERS,
OPP:CENTRAL MARKET ROAD,
MANGALORE-575001.
…RESPONDENTS
(BY SRI.RAJASHEKHAR ARANI, ADV. FOR R2;
NOTICE TO R1 SERVED)
THIS MFA IS FILED UNDER SECTION 173(1) OF MOTOR
VEHICLES ACT, AGAINST THE JUDGMENT AND AWARD DATED
28.11.2018 PASSED IN MVC NO.245/2015 ON THE FILE OF THE
MEMBER, ADDL.MACT, KUMTA, PARTLY ALLOWING THE CLAIM
PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT
OF COMPENSATION.
IN MFA NO.100932/2019:
BETWEEN:
1.
THE NATIONAL INSURANCE CO. LTD.,
DIVISIONAL OFFICE,
SECOND FLOOR, RASIK KCHAMBERS,
OPP: CENTRAL MARKET ROAD,
MANGALURU-575001,
NOW REPRESENTED BY ITS
AUTHORISED SIGNATORY.
…APPELLANT
(BY SRI. RAJASHEKHAR S ARANI, ADV.)
- 3 -
MFA No. 101422 of 2019
C/W MFA No. 100932 of 2019
AND:
1.
SRI.CHANDRAKANT S/O KRISHNA NAIK
AGE 62 YEARS, OCC: AGRICULTURIST,
R/O :KODKANAI, TQ: KUMTA,
NOW R/AT: KODLGADDE OF ANKOLA,
TQ: ANKOLA.
2.
SMT.KAMALA W/O CHANDRAKANT NAIK
AGE: 58 YEARS, OCC: HOUSEHOLD,
R/O: KODKANAI, TQ: KUMTA,
NOW R/AT: KODLGADDE OF ANKOLA,
TQ: ANKOLA.
3.
M/S A.M.D. SOUZA and SONS
OWNER OF VEHICLE
NO.MH-01/BS-0067, R/O: SHOP NO.4,
GURUKRIPA COMPLEX,
OPP KARAVALI HOTEL,
UDUPI, DIST: UDUPI.
…RESPONDENTS
(BY SRI.ANAND DESAI, ADV. FOR
SRI.J S SHETTY, ADV. FOR R1-R2)
THIS MFA IS FILED U/S.173(1) OF MOTOR VEHICLES
ACT, 1988, AGAINST THE JUDGMENT AND AWARD DATED
28.11.2018 PASSED IN MVC NO.245/2015 ON THE FILE OF THE
ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL, KUMTA,
AWARDING
COMPENSATION
OF
Rs.22,70,000/-
WITH
INTEREST AT 9% P.A. FROM THE DATE OF PETITION TILL ITS
REALISATION.
THESE APPEALS COMING ON FOR ADMISSION THIS DAY
ANANT RAMANATH HEGDE J., DELIVERED THE FOLLOWING:
- 4 -
MFA No. 101422 of 2019
C/W MFA No. 100932 of 2019
Heard the learned advocate appearing for the
appellants and the learned advocate appearing for the
respondent-Insurance Company.
MFA No. 101422 of 2019 is filed by the claimants in
MVC No.245 of 2015 on the file of the Addl.MACT, Kumta
challenging the judgment and award dated 28.11.2018.
In the aforesaid case, the appellants are seeking
enhancement of compensation. Also impugning the same
judgment and award, MFA No.100932 of 2019 is filed by the
insurer.
The
tribunal
has
awarded
a
compensation
of
Rs.22,70,000/- along with interest at the rate of 9% per annum
from the date of petition till the date of payment.
4.
The insurer is challenging the liability as well as the
quantum. The liability is challenged on the ground that the
vehicle involved in the accident did not have necessary route
permit. The insurer has also questioned the quantum on the
ground that the income of the deceased at Rs.24,000/- per
month as assessed by the tribunal is on higher side and not
acceptable.
- 5 -
5.
The first question that arises for consideration is
whether the vehicle involved in the accident was plying on the
permitted route? Ex.R7 is the document produced by the
insurer. Ex.R7 reveals that there was permit to ply the vehicle
from Mumbai to Mangalore via Puna-Kollapur-Belgaum-Ankola-
Udupi-Mangalore. Ex.R7 would also reveal that as on the date
of the accident, the vehicle had permit to ply on the aforesaid
road. From the route mentioned in Ex.R7, it is apparent that
the vehicle was plying on the permitted route and the accident
had occurred when the vehicle was plying on the permitted
route. Under these circumstances, by referring to the very said
document produced by the insurer, this Court is of the view
that there is no violation of route permit as such, the insurer is
liable to pay compensation.
6.
Learned counsel for the appellants/claimants as well
as the learned counsel for the respondent-insurer have also
addressed their arguments justifying the grounds urged in the
respective appeal memorandums relating to quantum of
compensation awarded by the tribunal.
7.
The tribunal primarily placed reliance on Exs.P9 and
10, the income tax returns for the assessment year 2014-15
- 6 -
and 2015-16. The accident admittedly occurred on 02.04.2015
and on account of said accident, Prasad S/o.Chandrakant Naik,
rider of the bike died in the accident. On perusal of Exs.9 and
10, it is apparent that income tax returns were submitted
subsequent to the death of Prasad Naik. Income tax returns for
assessment year 2014-15 was filed on 15.08.2015 and income
tax returns for the assessment year 2015-16 was filed on
23.05.2015. No documents produced to show the returns filed
prior to his death. The income as on the date of death of Prasad
is to be considered for calculating loss of dependency.
8.
Learned counsel for the appellants/claimants would
submit that the deceased-Prasad was a businessman dealing in
BSNL SIM card as well as currency recharge cards. It is urged
that he was also involved in Cement Business. To substantiate
the contention, the claimants have produced Original Form VAT
146 and certificate issued by AGM of BSNL, Karwar. Exs.P5 and
P6 are the certificates issued by ACC Cements for the year
2010 and 2013. It is the submission of the learned counsel for
the appellants/claimants that these documents would indicate
that deceased Prasad was a businessman having income.
Income tax returns, which are shown at Exs.P9 and 10, the
- 7 -
Court perused Exs.P9 and 10 the income tax returns for the
assessment years 2014-15 and 2015-16, which are in the
name of Prasad Agencies, Gullapur. Prasad died on 02.04.2015
i.e. prior to filing of income tax returns.
9.
Learned counsel for the insurer Sri.Rajashekhar
Arani would submit that though the documents produced
relating to ACC Cements dealership held by deceased Prasad
and certificate issued by BSNL to establish the dealership, the
claimants/appellants have not produced any documents to
substantiate the in